Observation: The Chinese Home Appliance Chain Industry Competition Is Deepening

Observation: The Chinese Home Appliance Chain Industry Competition Is Deepening

With States United States 3.6 billion last year after winning in large and medium,

Home Appliances Hutch chain industry stand together in this situation began to show. Survey, the National United States to 102.35 billion yuan annual sales, 1,020 stores among the 2007 performance of the first hundred Chinese chain, Suning Zeyi 85.48 billion yuan annual sales, 632 sales outlets was third.

And Gome, Suning, whether the number of stores or sales volume is far more than any other five-star chain, Best Buy and other brands. Therefore, Gome, Suning two strategic layout will be the home appliance chain industry trends weathervane.

We expand the two chains in different ways can be seen, the country adopted the U.S. M & A growth model in vitro, and Suning to the in vivo growth pattern, which resulted in both companies there is a clear style differences.

Currently owned stores in the States United States

Network , Shanghai, Harbin, Changzhou and Beijing, more than 10 regional home appliance chain Gome brand are included in the bag. This year in February, the National US-Youyi 537 million campaign was 10.67% stake in triple trading company, officially became the largest shareholder of triple trading company. Is not difficult to see mergers and acquisitions to expand U.S. stores has been the main theme of the country.

Store chain has been expanding the number of fast magic weapon to dominate the market, this is the best way to check opponents. This approach also makes the country the U.S. has been in addition to the market outside of Nanjing, a city market, the network layout and the completion of the formation of absolute monopoly. States United States

Electrical He said Yang Qing, vice president, to Beijing, Tianjin, North China, as represented, with Shanghai as the center of the East China area, to the center of South China, Guangdong, and Shandong market, stores that competitors can offer. Shows that the expansion of store network continues to be the country the United States that is an important mode of growth.

And national U.S. expansion strategy significantly different, so far, not to acquire other Suning Appliance Company case. The pace of expansion compared to GOME, Suning adhere to the "self-development business" strategy. Suning CEO Sun Weimin said Suning to open 200 new stores this year, is expected to the end of 2008 the total number will reach 900 stores around. In recent years, Suning 150 stores per year to maintain the speed shop. For Beijing and Shanghai markets, decided to heavily invest Suning, two home appliance chain stores within 3 years, reached the 100 scale. In the shop the way, Suning will continue to implement a large shop strategy.

Although the two giants of different development models, but as Gome and Suning the acceleration of the expansion, local chain of appliance smaller and smaller living space, appliances

Retail Market share will increasingly to GOME, Suning and other leading enterprises concentrated.

Also, in addition to increased industry consolidation, the two giants of the strategic direction of home appliance chain has directly led to changes in the direction of retail competition.

First, as an increasingly saturated market, Gome, Suning stores have begun to penetrate to the second and third tier markets, for two, three blind spots and gaps in the market, the two giants have started planning for distribution and.

Second, the chain will shift one store shop blindly raise efficiency. We see that, although the scale point of view from the store, Suning is half of the country the United States, but the two single-store sales last year of view, countries the U.S. is 100.3 million yuan, while Suning 1.35 billion, but over Suning U.S. abroad. Therefore, improving the profitability of a single store will be the country's difficulties in breaking the United States this year. Was not only a beauty shop blindly evil led to another appliance store there shoulder to shoulder following a heel, close fight the phenomenon, making price shopping home appliance chain increasingly tragic plight worsened. Change this phenomenon, gradually focus on single-store chain's profitability.

Again, opening up new growth outside of home appliances chain point is one of the direction. Home appliance chain retailers rely on the main profit model "to make product net price", "slotting allowance charged to suppliers and promotional fees" and other means, but this traditional approach has also led to lower household appliances industry, the relationship between supply chain more and more intense. In March of this year, Gome stores in China launched a "settling insurance" and Suning launched the "sunshine guarantee"

Service

On, not hard to see, home appliance chain has begun to seek new business profits.

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